The Bank Policy Institute (BPI) has issued a report warning of the risks stablecoins pose to financial stability and retail investors. Released on November 3, 2025, the assessment highlights concerns over depegging events and risks associated with DeFi lending platforms. Historical incidents such as USDT's drop to $0.90 in 2018 and USDC's fall to $0.87 in 2023 were cited as examples of potential instability. In response, Alexander Grieve from Paradigm criticized the BPI's report, accusing it of mischaracterizing stablecoins and opposing crypto innovation. Grieve likened stablecoins to transformative technologies and challenged the BPI's call for stricter regulations. The banking groups have advocated for enhanced AML/KYC measures and limitations on non-bank stablecoin issuers following the GENIUS Act's enactment in July 2025.